Shares of Castrol India surged 10.59 per cent to Rs 245.88 on March 6, hitting a five-month high of Rs 251.95 in intraday trade.
The stock has rebounded 50 per cent from its 52-week low of Rs 162.80, recorded on January 28, 2025.
During the morning session, Castrol India was up 9 per cent at Rs 241.30, significantly outpacing the 0.32 per cent rise in the BSE Sensex. Trading activity surged, with a total of 27.24 million shares, representing 2.75 per cent of the company’s equity, being exchanged across the NSE and BSE.
The stock has gained 26 per cent over the past 12 trading sessions, signaling strong buying interest.
Castrol India, a key player in the lubricants industry, benefits from increasing demand across automotive and industrial segments, which together account for nearly 99 per cent of the company’s business.
Despite the long-term shift toward electric vehicles (EVs), the company expects demand for lubricants to remain robust until the late 2030s and early 2040s due to low car penetration in India. Castrol India is actively adapting to industry changes by focusing on CNG-powered vehicles, premium two-wheelers, and hybrid engines.
Additionally, the company is expanding its reach in high-growth industries such as aerospace, wind energy, defence, and electronics manufacturing by offering specialized lubricants and metalworking fluids.
Motilal Oswal Financial Services has reiterated a ‘Buy’ rating on Castrol India with a price target of Rs 260. The brokerage firm estimates an Ebitda margin of 23 per cent for CY25 and CY26, driven by:
As Castrol India strengthens its position in traditional lubricants while strategically navigating EV adoption, analysts remain optimistic about its ability to sustain profitability and outperform the industry’s average growth rate of 4-5 per cent.
